Monday, February 3, 2014

ERM-BC-COOP:

Good, bad news
About terrorism
London-based Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), just released its annual Terrorism and Political Violence Map. to help organizations assess terrorism and political violence risk levels across the globe. The map is produced in collaboration with global risk management consultancy, the Risk Advisory Group plc,.

The good news:

  • 80 countries with terrorism perils indicated in 2014, 12% fewer than 2013
  • Europe sees notable improvement with 11 countries having civil commotion perils removed

NOTE: Canada, Mexico, and the United States were not mentioned in the report, and the map

The bad news:

For organizations with international interests (vendors, customer, etc.) , the bad news is that:

  • Thirty-three percent of all terrorism attacks affect the retail sector - 18 percent impact the transportation sector
  • Brazil facing an increased risk of unrest
  • In 2013, 52% of all terrorist attacks recorded took place in the Middle East - North Africa (MENA) region, up from 41% in 2012

While no MENA countries were specifically identified, the report noted that "A new strain of Salafi Jihadism has emerged in the Middle East and North Africa (MENA) region as evidenced by increased levels of terrorism. This is a cause and effect of the limited political recovery of post Arab Spring countries, and has contributed to widespread high-to-severe risk ratings across the region."
It is interesting to note that Israel, Jordan, and Saudi Arabia are rated in the middle of Aon's risk scale.

The Aon report claimed that "Brazil was the only Latin American country to see its risk rating increase from medium to severe due to widespread and large-scale violent anti-government protests throughout 2013. The analysis indicates this unrest will likely continue in 2014, particularly ahead of the FIFA World Cup and the October general elections."

Africa, the report continues, "remains a continent of high political violence and terrorism risk, with 22 countries having high to severe risk ratings."

Report by sector

When looking at attacks on businesses by sector, the retail and transportation sectors were significantly affected in 2013, with 33 percent of terrorism attacks affecting the retail sector, and 18 percent of attacks taking place on the transportation sector. The retail sector includes venues such as public markets, which remain vulnerable to attack as seen last year in Kenya. Terrorism remains a variable threat in the Eurasia region, with Russia and Turkey the most affected by the threat through 2013. Additionally, the Winter Olympics in Russia, which will involve significant mass transportation moves, is seen as a potential terrorist target.

Moreover, Japan, Mozambique and Bangladesh have also seen increased scores with Bangladesh witnessing civil unrest over 70 days of strikes and accompanying protests, particularly against low wages and poor working conditions in the garments industry, adding to the issues impacting the retail sector.


The full report is available at
http://www.aon.com/risk-services/default.jsp

The map is shown at
http://www.riskmap.aon.co.uk/Terrorism_Risk_Map.aspx

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